Mobile wallet payments in India to surpass US$ 6.38 trillion (Rs. 531 trillion) in 2028: GlobalData

Mobile wallet adoption is rapidly rising in India, outpacing traditional payment methods like cash and cards. GlobalData forecasts mobile wallet transactions to exceed US$ 6.39 trillion (Rs. 531.8 trillion) by 2028, growing at a robust compound annual growth rate (CAGR) of 18.3% between 2024 and 2028. This growth is fuelled by government initiatives promoting digital payments, particularly through the unified payments interface (UPI), which saw transactions valued at US$ 2.5 trillion (Rs. 202.8 trillion) in 2023, with a staggering CAGR of 72.1% from 2019 to 2023.

The Reserve Bank of India (RBI) recently announced plans to enable cash deposits via UPI, a platform predominantly used for peer-to-peer (P2P) and digital payments. With a user base of 300 million as of October 2023, UPI's expansion will allow prepaid payment instruments (PPIs) to make payments through third-party UPI apps, facilitating cash deposits at Cash Deposit Machines (CDMs) without requiring an ATM or debit card. GlobalData Analyst, Ms. Shivani Gupta highlights the growing reach of mobile wallet payments, driven by government initiatives and widespread acceptance among merchants. They anticipate mobile wallets to further disrupt India's payment landscape by offering fast, secure, convenient, and cost-effective transactions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.